IIC PARTNERS GLOBAL SUCCESSION PLANNING STUDY 2014

IIC PARTNERS GLOBAL SUCCESSION PLANNING STUDY 2014

IIC  Partners  –  a  global  top  ten  recruitment  organiza6on  

Research  by  Amárach,  Ireland   www.iicpartners.com   [email protected]  

TABLE OF CONTENTS §  A.  EXECUTIVE  SUMMARY     §  B.        MAIN  FINDINGS:   §  SECTION  1: §  SECTION  2: §  SECTION  3:

 The  Senior  Execu@ve  Team  [SET]    Forces  of  Change    Succession  Planning  

  §  C.    APPENDICES  

A. EXECUTIVE SUMMARY

EXECUTIVE SUMMARY By  a  margin  of  3:1  68%  of  top  leaders  said  they  preferred  a  senior  execu@ve  who  could   mo@vate  and  inspire  others  more  than  they  desired  an  execu@ve  who  consistently   performed  well  (26%).  AWer  mo@va@onal  ability,  the  senior  execu@ve  traits  most  valued   by  organiza@ons  were:  strong  ability  to  manage  change  (51%),  ability  to  iden@fy  and   develop  talent  (46%)  and  consistent  high  performance  (26%).     The  Succession  Planning  Survey  results  revealed  that  the  average  senior  execu@ve  team   is  25%  female  and  75%  male.  More  than  half  of  the  teams  from  around  the  globe  (55%)   are  made  up  of  75%  or  more  males.     Key  findings  from  the  survey  also  demonstrated  that  companies  around  the  world  have   different  expecta@ons  of  how  long  a  senior  execu@ve  will  remain  with  an  organiza@on,   but  the  average  is  seven  years.  In  the  Americas,  the  expecta@on  was  slightly  longer  (7.9   years),  while  in  Asia  Pac,  it  was  shorter  (5.9  years).         *Due  to  rounding,  not  all  figures  add  up  to  100%  

B. MAIN FINDINGS

SECTION 1: SENIOR EXECUTIVE TEAM (SET)

TOP FIVE ATTRIBUTES OF A SENIOR LEVEL EXECUTIVE 1st   Strong  Ability  to  Mo@vate   Strong  Ability  to  Manage  Change   Ability  to  Iden@fy/Manage  Talent  

2nd  

33  

20   14  

15  

18  

16  

10   9  

8  

9  

The most desirable attribute of a SLE is to motivate and inspire others. Ranked by top attribute and then by top 3 score

68%   51%  

19  

18  

12  

Consistent  High  Performance   Innova@ve  Thinking  

3rd  

46%  

8   26%   12  

30%  

AMERICAS - TOP FIVE ATTRIBUTES OF A SENIOR LEVEL EXECUTIVE

1st   Strong  Ability  to  Mo@vate   Strong  Ability  to  Manage  Change  

33  

21   13  

Consistent  High  Performance   Ability  to  Iden@fy/Manage  Talent   Innova@ve  Thinking  

2nd  

14  

17  

19  

13   11  

7  

18   8  

3rd  

51%   7   27%  

18   10  

69%  

47%  

13   31%  

In the Americas region, multiple languages and digital and online experience were the least sought after attributes of a Senior Level Executive.

EMEA - TOP FIVE ATTRIBUTES OF A SENIOR LEVEL EXECUTIVE

1st   Strong  Ability  to  Mo@vate   Strong  Ability  to  Manage  Change  

2nd  

32  

19  

15  

Consistent  High  Performance  

16   19  

22  

Ability  to  Iden@fy/Manage  Talent   Innova@ve  Thinking  

3rd  

13   11  

8  

18   10  

56%   7   27%  

7  

18  

67%  

47%  

13   31%  

Across all regions, managing change, identifying and developing talent and innovative thinking are also seen as key attributes.

ASIA PAC - TOP FIVE ATTRIBUTES OF A SENIOR LEVEL EXECUTIVE

1st   Strong  Ability  to  Mo@vate   Strong  Ability  to  Manage  Change   Ability  to  Iden@fy/Manage  Talent   Innova@ve  Thinking   Consistent  High  Performance  

2nd  

3rd  

19  

35   14   14  

16  

15  

21  

50%  

17  

50%  

19   8   7  

70%  

8   8  

In Asia Pac, survey respondents ranked “international experience” as #6.

11   27%   7   22%  

AVERAGE COMPOSITION OF SENIOR EXECUTIVE TEAM

Global  Average  Composi?on     External Internal

38%  

45%  

17%  

•  In  the  Americas,  13%  of  the  SET   is  made  up  of  group*   candidates  vs.  21%  in  Asia  Pac     •  The  EMEA  region  has  a  higher   group*  composi@on  of  SET  at   20%     •  The  Asia  Pac  region  has  a  lower     external  composi@on  of  SET  at   36%  

Group* *Group  candidates  refer  to  candidates  outside  your  local  organiza@on  but  from  within  the  group  organiza@on,  e.g  from  another  region.  

The average SET is made up of 45% internal candidates, 38% external candidates and 17% group* candidates.

AVERAGE LENGTH OF TIME SERVED BY SENIOR EXECUTIVES

3-­‐5  Years  

Regional  Breakdown  

6-­‐10  Years  

Length  of   Time  

11-­‐15  Years  

Less  than  2  Years   Don't  Know  

More  than  16  years     0  

5  

10  

15  

20  

25  

%  of  Survey  Responses  

30  

35  

40  

45  

Americas   7.9  Years  on  Average     EMEA   7.0  Years  on  Average     Asia  Pac   5.9  Years  on  Average              

The average length of time served by SLE’s is 7 years. This increases to 7.9 years in the Americas and falls to 5.9 years in Asia Pac.

GENDER COMPOSITION OF SET

Average  Composi?on     Male

Female

25%  

75%  

•  Gender  composi@on  was   ranked  as  an  important   issue  for  nearly  57%  of   organiza@ons     •  62%  of  Senior  Execu@ves   in  EMEA  ranked  gender   diversity  as  a  top  priority  

The average SET is made up of 75% males and 25% females. 83% of Senior Executives said their SET was over 50% male.

EXPECTED CHANGE IN GENDER COMPOSITION OVER THE NEXT 3 YEARS Change  in  Gender  Composi?on   Increase Males

•  In  EMEA,  45%  of  survey   respondents  expect  an   increase  in  gender   composi@on  over  the  next   3  years     •  In  Asia  Pac,  37%  of  survey   respondents  expect  an   increase  in  gender   composi@on  over  the  next   3  years    

Increase Females

4%   41%  

39%  

16%  

No change

Don’t know / Refuse 4-in-10 organizations expect to increase the number of females in their SET over the next 3 years. This increases to 46% among organizations where the SET is currently made up of more than 50% males.

SECTION 2: FORCES OF CHANGE

PRIMARY FORCES DRIVING CHANGE IN YOUR ORGANIZATION

1st   New  Forms  of  Compe@@on  

2nd  

3rd  

15  

15  

14  

44%  

Government  Regula@on  

14  

11  

9  

34%  

Technological  Developments    

12  

10  

11  

33%  

11  

36%  

New  Sales/Business  Channels   Globaliza@on  

12  

13   11  

7  

7  

25%  

The primary driver for change is ‘new forms of competition’ with 44% of Senior Executives mentioning this in their top 3. * Ranked by top force and then by top 3 score

AMERICAS - PRIMARY FORCES DRIVING CHANGE IN YOUR ORGANIZATION

1st   Government  Regula@on  

14  

New  Sales/Business  Channels   New  Forms  of  Compe@@on   Technological  Developments     Globaliza@on  

13   12  

12  

8  

34%  

11  

9  

33%  

17   12   12  

3rd  

2nd  

14  

33%  

10  

11  

33%  

8  

10  

30%  

  The  primary  driver  for  change  in  the  Americas  is  ‘government  regula@on’  with  34%  of  Senior  Execu@ves   men@oning  this  in  their  top  3.  *    Ranked  by  top  force  and  then  by  top  3  score    

EMEA - PRIMARY FORCES DRIVING CHANGE IN YOUR ORGANIZATION

1st   Government  Regula@on  

15  

Globaliza@on   New  Forms  of  Compe@@on  

2nd   11  

15  

9   16  

13  

Technological  Developments    

13  

New  Sales/Business  Channels  

8  

10   13  

3rd   10  

36%  

9  

33%  

14  

33%  

11  

34%  

14  

35%  

The primary driver for change in EMEA is ‘government regulation’ with 36% of Senior Executives mentioning this in their top 3. * Ranked by top force and then by top 3 score

ASIA PAC - PRIMARY FORCES DRIVING CHANGE IN YOUR ORGANIZATION

1st   New  Forms  of  Compe@@on   New  Sales/Business  Channels   Government  Regula@on   Technological  Developments     Globaliza@on  

2nd  

3rd  

13  

20   14  

15   12  

10   11  

43%  

14   9  

11  

51%  

18  

7  

9  

30%  

11  

32%  

7  

25%  

The primary driver for change in Asia Pac ‘new forms of competition’ with 51% of Senior Executives mentioning this in their top 3. * Ranked by top force and then by top 3 score

ANTICIPATED CHANGE IN FUNCTIONAL AREAS OVER THE NEXT THREE YEARS

1st   Technology   Sales  

23  

Opera@ons   Human  Resources  

15   12  

11  

Marke@ng  

2nd  

10   9  

11   12  

9  

8  

3rd   11  

47%  

12  

35%  

9  

38%  

12  

34%  

12  

27%  

Technology is still the area where most functional change is expected over the next 3 years.

SECTION 3: SUCCESSION PLANNING

SUCCESSION PLAN IN PLACE FOR SET Regional  Breakdown  

Global  Breakdown  

No  

Unsure  

Americas  

No  

Yes  

58%   7%  

37%  

58%  

5%  

59%  

9%  

56%  

7%  

EMEA  

35%  

Don’t  Know  

Yes  

32%  

Asia  Pac   37%  

Nearly 6-in-10 (58%) of Senior Executives said their organization had a succession plan in place for their SET. This did not differ significantly across the three regions.

SUCCESSION PLAN IN PLACE FOR YOUR POSITION

Global  Breakdown   Yes  -­‐  within  12  months  31%   No  -­‐  no  plan  26%   Yes  -­‐  ready  now  20%   No  1-­‐3  years  16%   No  over  3  years  4%   Don't  know  3%  

•  Half  of  Senior  Execu@ves  say   there  is  a  plan  in  place  for   their  posi@on  if  they  were  to   leave  within  the  next  12   months     •  26%  of  respondents  said  there   is  no  succession  plan  

Nearly half say it would take longer to put someone in place. Organizations in EMEA seem most prepared.

TOP THREE REASONS FOR LOOKING OUTSIDE YOUR ORGANIZATION FOR SENIOR LEVEL EXECUTIVES

1st   Lack  of  internal  candidates   Need  for  a  fresh  perspec@ve   Desire  to  increase  range  of  experience/skills   Need  skills  for  current  business  challenges   Need  for  someone  who  can  change  culture  

38   16   12  

2nd   15  

17  

22   16  

9  

15   18  

21  

10  

3rd  

12  

68%   55%   51%  

14   40%   11   32%  

The primary reasons for looking outside one’s organization for an SLE is a lack of experienced people within the organization.

EXPERIENCE OF UNFORESEEN DEPARTURES OF SENIOR LEVEL EXECUTIVES IN PAST 3 YEARS Global  Breakdown  of   Unforeseen  Departures  

No   40%   57%   3%   Don’t  know  

Yes  

•  53%  of  survey  respondents  said   that  an  unexpected  departure   caused  some  difficulty     •  63%  of  respondents  in  Asia  Pac   have  experienced  an  unexpected   departure   •  Only  1-­‐in-­‐8  said  an  unexpected   departure  did  not  impact  their   business.  

Nearly 6-in-10 (57%) organizations say they have experienced an unforeseen departure of an SLE within the past 3 years.

IMPLICATIONS OF UNFORESEEN DEPARTURES OF SLE

Top  5  Implica?ons  of   Unforeseen  Departures   1.  Nega?ve  impact  on  culture   2.  Loss  /  delay  of  new   product  /  service   3.  Departure  of  other   execu?ves   4.  Loss  of  revenue   5.  Nega?ve  publicity  

•  Loss  of  revenue  was  ranked   number  2  by  respondents  in   EMEA     •  Loss  of  planned  merger/ acquisi@on  was  least  affected   by  unforeseen  departures  of   Senior  Execu@ves  across  all   regions  

Other functional effects (e.g. loss of profit, loss of products/clients etc.) score considerably lower.

C. APPENDICES

INDUSTRY SECTORS

Manufacturing  –  13%  

Pharma/Life  Sciences  –  7%  

Not-­‐For-­‐Profit/NGO  –  3%  

Financial  Services  –  12%  

Healthcare  -­‐  6%  

Agri/Forestry/Fishing–  2%  

Consumer  Products  –  9%  

Industrial/Business  Services  -­‐  6%  

Educa@on  –  2%  

Professional  Services  –  9%  

Retail  -­‐  4%  

Entertainment  –  1%  

Technology/Media  –  8%  

Transporta@on  -­‐  4%  

Tourism  –  1%  

Energy/U@li@es  –  8%  

Construc@on  -­‐  4%  

Mining  –  1%  

  A broad mix of industry sectors were represented in the research.

ORGANIZATION TYPE & EMPLOYEE NUMBERS Organiza?on  Type   Privately  Owned   Publicly  Owned  

Not  for  profit  /  NGO   Family  Owned  

43%  

Government   Other  

38%  

8%  

5%   3%   3%  

Organiza?on  Size   Less  than  500   More  than  25,000   26%  

1,000-­‐4,000   10,000  –  24,999   22%  

5,000-­‐9,999   500-­‐999   22%  

12%  

10%   8%  

The majority of organizations were either publicly or privately owned, each representing approximately 40% of the sample.

GENDER & POSITION IN ORGANIZATION

Gender  

Posi?on  

Male  73%   Female  26%   Refuse  1%  

CEO  or  Equivalent   17%   Other  C-­‐Suite  15%   Managing  Director   or  Equivalent  30%   Senior  Execu@ve   27%     Other  12%  

Three quarters of respondents were male while one quarter were female. Nearly one third were C-suite while another 30% were Managing Directors or equivalent.

EDUCATIONAL LEVEL & EXECUTIVE EDUCATION Masters  Degree  –  42%  

Specific  Senior  Level  Execu?ve  Educa?on  

Bachelor’s  Degree  –  17%  

1%  

Postgraduate  Cer@ficate/Diploma  –  11%   Cer@ficate/Diploma  –  11%   Professional  Qualifica@on  –  7%  

Yes   No  

43%  

Don't  Know  

PhD/Doctorate  –  7%   No  University  –  3%     Two thirds of respondents have gone beyond the bachelor degree level

56%  

IIC PARTNERS – GLOBAL FIRMS AMERICAS  

EMEA  

EMEA  Con?nued…  

Chadick  Ellig  -­‐  New  York  

BIGRAM  Management  &  Investment  –  Warsaw  

Per  Ardua  Associates  Limited  –  London  

Clarey  Napier  Interna@onal  –  Houston    

Constella@on  s.r.o.  –  Prague  

Progress  –  Paris  

Conroy  Ross  Partners  –  Calgary,  

The  Curzon  Partnership  –  London  

Slava  Execu@ve  Search  –  Moscow  

Edmonton,  Toronto  

Eblinger  &  Partner  –  Vienna  

 

Contevenca  –  Caracas      

Hoffman  &  Associates  –  Brussels  

 

Delta  Top  Talent  –  Mexico  City        

Holtrop  Ravesloot  &  Partners  –  Amsterdam  

 

Dinte  Resources,  Inc.  –  Washington  DC    

Human  Capital  Group  –  Copenhagen  

ASIA  PACIFIC  

Fesa  Global  Execu@ve  Search  –  Curi@ba,  

ingeniam  Execu@ve  Search  &  Human    

Athena  Execu@ve  Search  &  Consul@ng  –  New  Delhi  

Rio  de  Janeiro,  Sao  Paulo  

Capital  Consul@ng  –  Frankfurt  

de  Jager  Execu@ve  Search  –  Sydney  

Harris  Search  Associates  –  Columbus  

ISCO  Group  –  Oslo  

Palson  Consul@ng  Co.,  Ltd.  –  Tokyo  

Harvey  Hohauser  &  Associates  –  Detroit  

JFP  Execu@ve  Search  –  Helsinki  

PCI  Execu@ve  Search  Consultants,  Ltd.  –  Beijing,  

Hemisferio  Izquierdo  –  San@ago  

K.M.  Trust  &  Partners  –  Bucharest  

Shanghai,  Taipei  

Loguercio  y  Asociados  –  Lima  

Key2People  Execu@ve  Search  –  Milan,  Rome  

RGC  Execu@ve  Search  –  Bangkok  

Mase  Consul@ng  Group  –  Montreal  

Level  Consul@ng  AG  –  Zurich  

New  Direc@ons  Search  Ltd.  –  Chicago  

Merc  Partners  –  Dublin  

Stones  Interna@onal  –  Hong  Kong    

Prolaurum  –  Bogota,  Buenos  Aires  

Michaël  Berglund  Execu@ve  Search  AB  –  Stockholm  

Salveson  Stetson  Group  –  Philadelphia  

Parangon  Partners  –  Madrid  

   

         

For more information on the 2014 Global   Succession Planning Study, please contact Christine Hayward at [email protected].

ABOUT IIC PARTNERS

IIC  Partners  (www.iicpartners.com)  is  one  of  the  top  10  execu@ve  search   organiza@ons  in  the  world.  The  network  of  “Independent  Interna@onal   Consultants”  is  made  up  of  40  independently  owned  and  managed  execu@ve   search  firms  represen@ng  48  offices  in  34  countries,  all  considered  to  be   leaders  in  the  geographic  and  industry  markets  they  serve.  

For more information on the 2014 Global   Succession Planning Study, please contact Christine Hayward at [email protected].